Alibaba and other Chinese stocks get a boost after Shanghai lifts COVID-19 restrictions and officials unveil stimulus measures
- US-listed Chinese stocks rose Tuesday as Shanghai began lifting COVID-19 restrictions.
- Alibaba and JD.com gained as China's financial hub was getting back to work after a two-month lockdown.
Shares of Alibaba and other US-listed Chinese companies pushed higher Tuesday as Shanghai lifted COVID-19 restrictions put in place two months ago, with the move accompanied by measures aimed at helping reinvigorate economic activity in China's financial hub.
Restrictions will ease for about 22.5 million people in low-risk areas starting Wednesday, according to Reuters. Residents in the city of 25 million people must wear masks and avoid gatherings.
Investors lifted the share price of e-commerce heavyweight Alibaba by 4.6%, while rival JD.com advanced 7.2%, with each moving toward positive performances over a five-day period that will trim year-to-date losses. Online search and marketing services company Baidu picked up 4% and Pinduoduo, an e-commerce site for farmers in China, gained 6.1%.
Confirmed COVID-19 cases in China's second-largest city have been moving lower since mid-April, according to the local health data trackers. China instituted a zero-tolerance policy against the spread of coronavirus, seizing up a range of work activities in Shanghai from retail sales to manufacturing.
Beijing earlier this year forecast the nation's gross domestic product to expand by 5.5%, the slowest rate since 1991. As Shanghai emerges from the lockdown, local officials released 50 measures to bolster growth in the city. These include tax rebates for manufacturers and software makers, and subsidies to incentivize service-based businesses to hire more workers or retain employees.
Among exchange-traded funds on Tuesday, the SPDR S&P China ETF rose 3.7% and the iShares MSCI China ETF moved up 4%.